Edelweiss Tokio Life Insurance to set up robust agency model

KOLKATA: Edelweiss Tokio Life Insurance will invest Rs 100 crore each year for the next five years to set up the infrastructure required for a robust agency model.

According to Rashesh Shah, Chairman and CEO, Edelweiss Group, nearly 85 per cent of the insurer's total business would come from the agency model. "We are looking at doing need-based selling for our customers and to do this we need a robust agency model. It takes about 5-7 years for the model to be set up before it starts generating returns," Shah said at a press meet to announce Edelweiss Tokio's first branch in the eastern region here on Friday.

The company plans to have a network of 30,000 advisors by 2015. "The first 3-5 years we will spend on putting in place the infrastructure required," he said. The company, which commenced its operations about 18 months back, aims to achieve a new business premium of Rs 45 crore in 2012-13.

Edelweiss Tokio, a joint venture between Edelweiss Group and Tokio Marine Holdings, would invest close to Rs 950 crore over the next six years. The company has a paid-up capital of Rs 550 crore.